INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT

AHMEDABAD

SUBMISSION
ON

International HRM

Case Study

ASIMCO

Submitted To:

Professor Robin Thomas

Submitted By:

Pratik K S Negi

SS/09-11/ISBE/HR
Q1. Write a Brief on the company Asimco?

Ans- Is a company that is established by Jack Perkowski, ex- Wall Street employee.he came to know
about the motor vehicle part industry, thus he established the company. thus the motive behind the
company was to become a OEM for the major companies that are existent in the world and provide the
best of the featured products at an optimal rate using the best of the Manpower and technological
advancements that can be done in China. ASIMCO Manufacture a wide range of products including
diesel fuel injection components and systems, noise vibration and harshness (NVH) products,
compressors, brake and suspension components and assemblies, and engine components such as
camshafts, piston rings and cylinder blocks and heads.

ASIMCO Technologies has substantial capabilities in

key processes such as ferrous and aluminum castings
and NVH products, which combine several materials
technologies.

ASIMCO Technologies built significant market share in China, it started to examine overseas investment
opportunities. Europe, with its dynamic automotive industry, established mass-production makers and
large aftermarket made it the obvious choice for expansion. As a vital European market with a long
history of automotive innovation, ASIMCO Technologies chose the UK to aid its growth and ensure it
could be close to key manufacturing facilities

 Right now (2002) it had 15 manufacturing operations in 10 provinces and 36 sales offices.
 Products that are produced are utilized in

1> Engines
2> Cars
3> Trucks
4> Tractors
5> Bikes

Also exported to many countries like -

1. US
2. Europe
3. Japan
4. Southeast Asia

Major partners that included ASIMCO were as under

 Bosch
 Caterpillar
 Chicago Rawhide
 Delco Remy America
 Delphi
 Honeywell
 Nippon Steel ring
Q2. Kindly highlights I-HRM issues in the case?

Ans- internal HRM issues that have cropped up for the company to get itself established in china can be
under listed as below..

1. Manager having traditional approach of managing things as State was under the control of the
profits and other parameters of governance.
2. Not having a proper skill sets and hand on experience to face the international pressure.
3. 2 SEPARATE extremes of managerial candidature for the positions that were to be fulfilled

Three cadre of managers available and the company was facing difficulty to implement and
bridge the gap between management and the task force

 Expatriates Adopted but failed technique

 Third country nationals

 Develop Chinese managers (started working on the same)

Other issues faced

Replacements – political linkage were established that was a real hurdle in the way for any strategic
implementation.

Q3.Kindly elaborates the strategies to overcome these issues?

Ans- there was a strategic initiative that was taken for resolving the issues and thus a clear categorized
solution was adopted for the same which included…

Restructuring

Political appeal—was utilized for influencing the political environment to make sure proper task force
was under proper management.  Improved production

Recruitment -- were made for new minds and better caliber to enter the organization, head hunting,
internet and referrals were used. also recruitments from competitors and allies was utilized, plus a
{glocal} kind of a recruitment was utilized to make sure that any person at a management level has a
local plus global exposure.

Media linkage – to make sure that the illegal encroachments and disputes can be solved

Operational control -- new appointments were made and old recruits who were involved in the biased
decision making or were political influenced were taken off. their aim was to removal of any sort of
corruption and also any sort of distortion in the working
 TALENT IS WHAT IS INSIDE

Involvement of third party – Hewitt associates (consultants), plus diagnosing the goals and what
company asks from the employees.

Vision

Core purpose core values GOALS

Even the communist employees were utilized for the same. to spread the power of the word “ WE “,
company norms, activities and staff and organizational values.

DEVELOPMENT and IMPLEMENTATION

Of
MANGEMENT TOOL

Incentive system – managers scales were depending on the operating EBITDA, also reduction of Bad
debts, ( no issues were left with the late payment)

- Criteria of educational level on managers Pay scales.

- Bonus system and current level of salary classification made sure that the EMP sat index remain
high.
Forum and meetings

(Strategy incubation, new orientation to process, quarterly results, share experiences and error
removal)

Quality & Training-- international benchmark were utilized for getting best results ( Six Sigma)
- Functional training (JIT, lean and other methodologies)
- Improved importance on studies

Performance management and Leadership

- Goal setting, feedback and coaching were included

- LDP (leadership development program) – practical training and hand on experience
- Effective GAP filling and replacement technique

Commitment and trust

- Language was not a barrier for moving up the ladder in the organization,
- Sense of self responsibility was developed within the employees.

Thus BY these methods the issues were handled